Payments & Fees
Deposits vs. Pay in Full for Custom Home Products
How to choose between deposit payments for custom orders and pay in full, by product line, with sample policies, timing, and what to put in writing.
Deposit payments for custom orders protect you against the cost of building something nobody collects, while pay in full simplifies your books and removes the balance chase. Most made-to-measure companies end up using both: deposits on large, long-lead orders and full payment on smaller or faster items. The right choice depends on the product line, the lead time and how much of the cost you spend before the customer sees the result.
Why made-to-measure is different
A retailer selling stock items can take payment at checkout and refund later if something goes wrong. Custom work does not work that way. Once you cut, edge, paint or temper a product to someone's measurements, it usually has no other buyer. Materials and labour are committed early, often weeks before delivery.
That is why the payment question matters more in this trade. Collect too little up front and a cancelled order can cost you the full materials bill. Collect everything up front on a long lead time and some buyers will hesitate, or ask questions about what happens if something changes.
Deposit payments for custom orders: how to set the amount
There is no single correct percentage. A practical way to set it is to cover what you would lose if the order were cancelled after production started.
- List your committed costs. Materials ordered or cut, outsourced work, and any labour that happens before the next payment point.
- Compare them to the order value. Say a kitchen order is $14,000 and $5,000 of materials and outsourced finishing are committed in the first two weeks. A deposit near that level covers your exposure.
- Round to a clear number. Buyers understand a simple percentage or a flat amount more easily than an odd figure.
- Set the balance trigger. Before shipping, on delivery, or after install. Pick one and state it everywhere.
Write the policy into the quote, the checkout and the confirmation email using the same words each time.
When pay in full makes more sense
Full payment up front is often the cleaner choice for:
- Small orders where a deposit and a balance would mean two transactions for little benefit.
- Sample kits and accessories.
- Short lead times, where production starts within days.
- Repeat trade customers who are not on account terms.
It also means no balance to chase, no second payment reminder and no awkward call when an order is ready but unpaid.
Comparing the two by product line
| Factor | Deposit plus balance | Pay in full |
|---|---|---|
| Best for | Large, long-lead, high-material orders | Small, quick or standard items |
| Cash at order | Partial | Full |
| Balance collection | Needed, with reminders | None |
| Buyer comfort | Higher on big orders | Higher on small orders |
| Cancellation exposure | Limited to deposit coverage | Fully covered, refund handling instead |
Many companies set this per product rather than per business. A countertop fabricator might take a deposit to book a template visit, as covered in template-visit deposits for countertop fabricators, while taking full payment on a vanity top from stock sizes.
Practical details that save headaches
- Show the split before payment. The review screen should show the total, the deposit due today and the balance due later, with the trigger for the balance.
- Name it a deposit. On the receipt and in emails, call it a deposit, never just "payment", so the buyer knows more is due.
- Collect the balance through the same account. Mixing card, e-transfer and cheque for one order makes reconciliation harder.
- Put cancellation terms in writing. State what happens to the deposit if the buyer cancels before and after production starts. Check the wording with your lawyer, since consumer protection rules vary by province and state.
- Watch the fees. Each transaction carries processing fees, and some ordering platforms add their own percentage on top. Our post on the hidden cost of percentage fees shows how that adds up on large orders.
Where the money should land
Whichever model you choose, deposits and balances should go straight to your own merchant account, so refunds, disputes and payouts stay under your control. If a platform holds funds or routes them through its own account first, find out how long payouts take and who handles a dispute. We go into this in why payouts should land in your own Stripe account.
How Inlay handles this
- Inlay lets you set deposits or pay in full per product, so each product line can follow its own policy.
- Payments run through your own Stripe account via Stripe Connect, and payouts, refunds and disputes stay between you and Stripe.
- Card numbers are entered in Stripe's secure fields and never touch Inlay's servers.
- Inlay takes 0% of sales; only Stripe's own processing fees apply.
- Editable automated emails, including order confirmations and reminders, can carry your deposit and balance wording.
Book a 20-minute demo to see deposits set up on your product lines.